SRP Groupe SA · EURONEXT:SRP
SRP Groupe SA — Showroomprivé — Investor Presentation (October 2015)
31 slides from SRP Groupe SA's investor presentation, October 2015
Slide 1: We are Showroomprivé.com – Investor Presentation October 2015
WE ARE SHOWROOMPRIVE.com INVESTOR Presentation October 2015
Slide 2: Agenda
AGENDA I. INTRODUCTION II. KEY INVESTMENT HIGHLIGHTS III. VISION IV. APPENDIX 2
Slide 3: Introduction
\ showroony ~ showroomp! LES GRANDES MARQUES EN VENTES PRIVEES uSOUTA INSCRIVEZ-VOUS GRATUTEMENT
Slide 4: Entrepreneurs with roots in fashion sales and online marketing
WE ARE ENTREPRENEURS WITH ROOTS IN FASHION SALES AND ONLINE MARKETING I. INTRODUCTION David Dayan Thierry Petit Co- Co-Founder and Co- Co-CEO Co- Co-Founder and Co- Co-CEO 25 years experience 16 years experience in fashion sales in e-commerce and online Prior to founding marketing Showroomprivé, Dav
Slide 5: Re-inventing the way women discover and shop for high street fashion
WE ARE RE- RE-INVENTING THE WAY WOMEN DISCOVER AND SHOP FOR HIGH STREET FASHION I. INTRODUCTION Curated shopping experience for digital women 12-15 great deals, every day, on well-known and up-and-coming brands Mobile-first France + 8 countries in Europe Strong revenue growth, profitability, and cas
Slide 6: Showroomprivé shopping experience: a fun and engaging curated environment
SHOWROOMPRIVÉ SHOPPING EXPERIENCE: A FUN AND ENGAGING CURATED ENVIRONMENT I. INTRODUCTION – 2. COMPANY OVERVIEW Exclusive members only platform Personalized experience Across all devices Attractive and interactive design Detailed look and feel Seamless ordering and payment 6
Slide 7: Business model: our differentiated retail proposition
BUSINESS MODEL: OUR DIFFERENTIATED RETAIL PROPOSITION I. INTRODUCTION – 2. COMPANY OVERVIEW LOOKING FOR GREAT DEALS 20m 4.3M CUMULATIVE BUYERS1 6.4M APPS DOWNLOADED2 MEMBERS 1.5M VISITS PER DAY3 ~12-15 SALES EVENTS PER DAY ~50-70% OFF RETAIL PRICES 1,300 77% CONSIGNMENT AND 23% FIRM SALES4 BRANDS1 L
Slide 8: Key investment highlights
II key investment highlights
Slide 9: We are… (nine investment highlights)
addressing the large and under-penetrated European 1 online fashion market 2 focused on the needs of digital women 3 obsessed with mobile, data and innovation 4 WE ARE… all about driving member engagement and loyalty ARE 5 offering brands a compelling alternative distribution channel 6 running a hig
Slide 10: Addressing the large and under-penetrated European online fashion market
1 WE ARE ADDRESSING THE LARGE AND UNDER- UNDER- PENETRATED EUROPEAN ONLINE FASHION MARKET II. KEY INVESTMENT HIGHLIGHTS Large online fashion market… …yet under-penetrated Online retail spending by category in Europe (2014) Online retail penetration by category in Europe (2014) €41bn €32bn 15% 10% €1
Slide 11: Online is a superior distribution channel for brands managing excess inventory
1 ONLINE IS A SUPERIOR DISTRIBUTION CHANNEL FOR BRANDS LOOKING TO MANAGE EXCESS INVENTORY II. KEY INVESTMENT HIGHLIGHTS Excess inventory is structural Online channels are disruptive STRUCTURAL OVER PRODUCTION SUPERIOR VALUE PROPOSITON In up and down cycles BROADER SHORTER MERCHANDISING CYCLES CUSTOM
Slide 12: Focused on the needs of digital women
2 WE ARE FOCUSED ON THE NEEDS OF DIGITAL WOMEN II. KEY INVESTMENT HIGHLIGHTS Clear target: digital women Showroomprivé’s value proposition to consumers CURATED SELECTION OF WELL-KNOWN AND UP- AND-COMING BRANDS 12-15 SALES EVENTS EVERY DAY Avid internet and social media users FASHION-FOCUSED SELECTIO
Slide 13: Focused on the needs of digital women: engaged community
2 WE ARE FOCUSED ON THE NEEDS OF DIGITAL WOMEN II. KEY INVESTMENT HIGHLIGHTS …which is A strong engaged community… and loyal 20m members 49M visits in Dec-2014 69% are women of which buyers 77% were women of 2014 91% of free traffic of these female buyers 70% years were 25- 25-55 old 95% repurchase
Slide 14: Obsessed with mobile, data and innovation
3 WE ARE OBSESSED WITH MOBILE, DATA AND INNOVATION II. KEY INVESTMENT HIGHLIGHTS Mobile-commerce is our reality Our model was made for mobile 6.4M app downloads 1 Fun and engaging apps 66% of traffic 2 Constant connectivity Impulse purchase, on-the-go 46% of gross Internet sales 4 Adapted payment me
Slide 15: Driving member engagement and loyalty
4 WE ARE ALL ABOUT DRIVING MEMBER ENGAGEMENT AND LOYALTY II. KEY INVESTMENT HIGHLIGHTS 3 marketing objectives Solid results TV and radio branding campaigns BUILD BRAND AWARENESS Core values: – Fashion, innovation, accessibility, affinity 74% PROMPTED BRAND Content marketing AWARENESS IN FRANCE1 Data
Slide 16: Members have significant lifetime value
4 WE ARE ALL ABOUT DRIVING MEMBER ENGAGEMENT AND LOYALTY II. KEY INVESTMENT HIGHLIGHTS Our members have significant lifetime value Gross internet revenues generated from Q2 2013 member cohort (France) 23x …AND COUNTING! GROSS REVENUE/ €3,5m MARKETING SPEND €4,5m €3,1m €3,6m €3,8m 32,3m €32,3m €4,8m
Slide 17: Offering brands a compelling alternative distribution channel
5 WE ARE OFFERING BRANDS A COMPELLING ALTERNATIVE DISTRIBUTION CHANNEL II. KEY INVESTMENT HIGHLIGHTS Brand partners’ objectives Showroomprivé’s value proposition to brands MANAGE EXCESS Differentiated ability to sell INVENTORIES large volumes quickly 24M ITEMS SOLD IN 2014 STRONG PRODUCTION RESPECT
Slide 18: Brand sourcing agility and firm vs. consignment sales
5 WE ARE OFFERING BRANDS A COMPELLING ALTERNATIVE DISTRIBUTION CHANNEL II. KEY INVESTMENT HIGHLIGHTS Brand sourcing agility Firm vs. consignment sales (Share of 2014 group gross Internet revenues) Brand sourcing agility Fashion buying is part of our roots/DNA 157 experienced buyers 77 Goods stay wit
Slide 19: High-performance, scalable e-commerce platform
6 WE ARE RUNNING A HIGH- HIGH-PERFORMANCE, SCALABLE E- E-COMMERCE PLATFORM II. KEY INVESTMENT HIGHLIGHTS Optimized and scalable logistics infrastructure Outsourced arrangements In- In-house functions SAINT- SAINT-WITZ – Warehousing, for firm sales, inventory sorting, return processing with 40K sqm.
Slide 20: A founders-led team with complementary skillsets
7 WE ARE A FOUNDERS- FOUNDERS-LED TEAM WITH COMPLEMENTARY SKILLSETS II. KEY INVESTMENT HIGHLIGHTS Nicolas Woussen Chief Financial Officer Pingki Houang Chief Operating Officer Marianne Brucy Chief Marketing Officer Irache Martinez THIERRY PETIT DAVID DAYAN Brand Director Co-Founders and Co-CEO Aurél
Slide 21: Pursuing a large international opportunity
8 WE ARE PURSUING A LARGE INTERNATIONAL OPPORTUNITY II. KEY INVESTMENT HIGHLIGHTS A lean approach that minimizes initial financial investment Our footprint today and brand awareness1 INCUBATION Tech platform Opened Jan-2013 Leveraging our Relationships with existing brands BELGIUM platform Logistics
Slide 22: Growing rapidly and profitably
9 WE ARE GROWING Net Revenue RAPIDLY AND PROFITABLY YTD 30-Sep 2015: €290m II. KEY INVESTMENT HIGHLIGHTS (+29%) Net revenues € million y-o-y growth +38% +36% +29% 350 53 199 257 154 32 187 38 22 20 297 167 167 219 132 2012 2013 2014 H1 2014 H1 2015 EBITDA € million France margin1 6.0% 5.6% 6.4% 5.8%
Slide 23: Growing rapidly and increasing member engagement
9 WE ARE GROWING RAPIDLY AND INCREASING MEMBER ENGAGEMENT II. KEY INVESTMENT HIGHLIGHTS Revenues underpinned by success in converting Enhanced product offering members into buyers and driving more repeat purchases leading to improved ARPB Million € Average internet internet Members (cumulative) Buye
Slide 24: Attractive gross margin
II. KEY INVESTMENT HIGHLIGHTS 9 ATTRACTIVE GROSS MARGIN Gross margins € million 45,3% 42,4% 40,6% 42,5% 42,0% 146,9 80,9 109,2 65,2 84,5 2012 2013 2014 H1-14 H1-15 % of net revenues Product mix evolution % of gross Internet revenues 32% 38% 40% 28% 24% 23% 68% 62% 60% 72% 76% 77% 2012 2013 Fashion v
Slide 25: Strong operating leverage
9 WE BENEFIT FROM STRONG OPERATING LEVERAGE II. KEY INVESTMENT HIGHLIGHTS Main operating cost drivers Fixed vs. variable costs1 As % of net revenues (2014) 2012 2013 2014 H1-14 H1-15 Marketing 6.3% 5.7% 6.3% 4.9% 3.9% 49% 51% Logistics 25.9% 23.9% 24.3% 25.0% 23.6% G&A 10.0% 8.7% 7.7% 8.2% 7.8% Fixe
Slide 26: Strong cash conversion; self-funded since inception
9 OUR STRONG CASH CONVERSION HAS ENABLED US TO BE SELF- SELF-FUNDED SINCE INCEPTION II. KEY INVESTMENT HIGHLIGHTS Cash flow from operating activities EBITDA to cash flow bridge – 2014 before tax and after Capex € million € million % cash conversion 156% 134% 143% 143% CONVERSION1 27,1 (1,6) 13,1 22,
Slide 27: Guidance summary
9 GUIDANCE SUMMARY II. KEY INVESTMENT HIGHLIGHTS 2015 2016 MEDIUM TERM NET REVENUES (Y-o-Y GROWTH) €435 - 450m €520 - 560m c. €750m by 2018 (+24.4% – +28.7%) (+20% – +25%) SHARE OF INTERNATIONAL 16 - 17% 18 - 20% c. 25% by 2018 EBITDA MARGIN 5.1 - 5.3% 5.8 - 6.2% 7.5 - 8.0% by 2018 c. 8.0% in France
Slide 28: Vision
III VISION
Slide 29: Our opportunity is huge
OUR OPPORTUNITY IS HUGE III. VISION Continue to grow, expand and disrupt apparel retail by VISION staying true to our core “fashion fashion & innovation” innovation DNA More A test & learn members,more buyers, more engagement approach with minimal upfront METHOD investment that we have practiced sin
Slide 30: Appendix
IV APPENDIX
Slide 31: Attractive cohort dynamics
ATTRACTIVE COHORT DYNAMICS Our members convert to buyers increasingly A significant share of first-time buyers become rapidly and in greater proportion repeat buyers… increasingly quickly Member to buyer conversion (France) First-time buyer to repeat buyer conversion (France) Q2 2013 35% Member coho